Determinants of Vertical Coordination in Buyer-Seller Relations: Exploratory Findings from a Developing Economy
Year: 2011
Type: article
Abstract: This study aims at understanding determinants of vertical coordination for firms in developing economies byconducting exploratory study in Tanzania. The study is centred on business - to business buyer -seller relations.Primary data were collected from buying side of the relationship. The main supplier of each firm was identifiedand used for answering the questionnaire.Findings suggest contractual flexibility to have higher significantpositive effect in determining vertical coordination. The interaction effect between buyer asset specificity andcontractual flexibility was also significant, while asset specificity by itself was not found to be significant. Theseprelimenary findings suggest the strength of vertical coordination relies to extent onwhether parties inrelationship agree to be flexible in their contracts.
DOI: 10.5539/ijbm.v6n8p25
Author: Emmanuel James Chao
Institution: University of Agder
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W2017092867